Mumbai, India – Sun Pharmaceutical Industries Ltd., India's largest drugmaker, announced robust financial results for the fourth quarter of fiscal year 2026 (Q4 FY26), reporting a significant 26.2 percent year-on-year increase in its net profit. The company's profit after tax (PAT) reached ₹2,714 crore for the quarter ending March 2026, up from ₹2,149.9 crore in the corresponding period last year.
Alongside its earnings report, Sun Pharma's Board of Directors recommended a final dividend of ₹5 per equity share for FY26. This final payout, combined with an interim dividend of ₹11 per share already distributed in FY26, brings the total dividend for the fiscal year to ₹16 per share, matching the previous year's total.
Strong Revenue Growth and Margin Improvement
The pharmaceutical giant also saw its revenue from operations climb by 13.6 percent year-on-year, reaching ₹14,559.8 crore in Q4 FY26, compared to ₹12,815.6 crore in Q4 FY25. The company demonstrated improved efficiency, with its gross margin expanding to 80.8 percent from 79.4 percent a year ago.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 6.4 percent to ₹3,954.2 crore in Q4 FY26, up from ₹3,716.1 crore in the prior year. However, the EBITDA margin experienced a slight dip, moving from 28.7 percent in Q4 FY25 to 27.1 percent in the latest quarter.
Segment Performance and Strategic Vision
Sun Pharma highlighted strong performance across several key segments. India's formulations business recorded a 14.8 percent growth, driven primarily by the Cardiovascular (CVD), Central Nervous System (CNS), Gastro, and Ortho therapeutic areas. While US formulations revenue saw a marginal decline, settling at $459 million, emerging markets revenue demonstrated robust growth, increasing by 17.4 percent to $306 million. Revenue from the Rest of the World (RoW) formulations also saw a healthy 10 percent rise, reaching $220 million.
The company's commitment to innovation was evident in its R&D investments, which constituted 6.7 percent of sales during Q4 FY26. Notably, 36.9 percent of this expenditure was directed towards innovative medicines R&D, underscoring Sun Pharma's long-term growth strategy.
Kirti Ganorkar, Managing Director of Sun Pharmaceutical Industries Ltd., commented on the full-year achievements, stating, "Our full-year performance reflects several significant achievements. Sun's 0.3 percentage point gain in the India market is our highest gain since the Ranbaxy acquisition. Our US Innovative Medicines business has surpassed $1 billion in revenues, while Ex-US Innovative Medicines continues to demonstrate strong growth momentum. The recently announced Organon acquisition is expected to further accelerate Sun's transformation into a leading global pharmaceutical company."
Market Reaction
Following the announcement, shares of Sun Pharma were observed trading 2.68 percent lower at ₹1,840.45 on the stock exchange.